21) Posting is:
A) copying the information from the journal to the trial balance.
B) entering the data into the journal.
C) copying the information from the journal to the ledger.
D) copying the information from the ledger to the financial statements.
22) Every journal entry:
A) must increase at least one account and decrease at least one account.
B) must debit at least one account and credit at least one account.
C) is recorded in either the journal or the ledger.
D) affects both an income statement account and a balance sheet account.
23) In order to determine the balance in an account, you must look at the:
A) source documents.
B) journals.
C) ledger.
D) book of original entry.
24) When an expense account is increased:
A) an amount is entered on the credit side of the expense account.
B) an amount is entered on the debit side of the expense account.
C) cash must always be credited.
D) stockholders' equity is not affected.
25) The entry to record the purchase of supplies on account would include a credit to:
A) Supplies.
B) Accounts Payable.
C) Supplies Expense.
D) Cash.
26) A transaction that would include a credit to Cash is:
A) the purchase of supplies on account.
B) the payment of an account payable.
C) the collection of cash from an account receivable.
D) provide services and receive cash from the customer.
27) If a journal entry debits Accounts Payable and credits Cash, it can be determined that:
A) Cash will have a credit balance.
B) Accounts Payable increased.
C) Cash increased.
D) Accounts Payable decreased.
28) The payment for advertising costs for a monthly advertising campaign in the current month would include a:
A) debit to Cash.
B) debit to Prepaid Advertising.
C) debit to Advertising Expense.
D) credit to Advertising Revenue.
29) A journal entry that debits Cash and credits Accounts Receivable indicates that:
A) payment was received on account.
B) payment was made on account.
C) revenue increased.
D) revenue decreased.
30) An owner makes an investment of cash into the business and receives shares of stock. This transaction would include a:
A) debit to Common Stock and a credit to Cash.
B) debit to Cash and a credit to Common Stock.
C) debit to Retained Earnings and a credit to Cash.
D) debit to Common Stock and a credit to Retained Earnings.